The beer category in 2016 - just-drinks' Review of the Year, Part I

As the end of the year approaches, just-drinks looks back at the stories that made the headlines in 2016 across the global drinks industry. Here, editor Olly Wehring picks out the highs and the lows for the beer category.

The scene had been set in the latter half of 2015: Anheuser-Busch InBev was set to spend 2016 – and beyond, if some commentators were to be believed – working to complete its US$104bn takeover of SABMiller. This was it: The big one; the third largest takeover in corporate history. And, it was going to take time to sort out.

Russia

Long the problem child for brewers - particularly market leader Carlsberg - Russia would have appeared this year to have found the bottom of its current cycle. Against a background of brewery closures and job cuts in the country, Carlsberg was moved in March to restate its support for its Baltic Beverages Holding in the country. "Although Russia currently faces macroeconomic challenges," said CEO Cees 't Hart, "we believe that the market offers many opportunities. We will navigate through the challenging times and ensure we are ready to capture the opportunities as they arise." Has the group's persistence paid off? Figures released last month certainly suggest a brighter future, with Carlsberg's third-quarter volumes in the country leaping by 16%.

The real colour came in October, when an off-hand comment by ABI's CEO sent the craft segment into kitten-having territory. Beer drinkers - and beer shelves - have a limited palette, argued Brito in a conference call. "There's only so much shelf space that you can share and cold box that you can spilt," he said, adding that consumers were "a bit tired of choice and go for fewer brands". What followed was the kind of purist hand-wringing one might expect from craft fans. Later that week, Molson Coors' CEO, Mark Hunter tipped craft fans over the edge, when he backed up Brito's claims. "I think what you are starting to see," said Hunter, "is probably over-supply of flavours and SKUs... both retailers and consumers are trying to make sense of the plethora of choice."

But, hey, there's only one thing worse than being talked about, right?

One sub-category that has enjoyed a bumper year in the US is Mexican beer, which has benefitted from a wave created - and surfed - by Constellation Brands. So big is the wave that other international brewers have upped their activity in this booming segment. The only blot on the landscape, though, is Trump-shaped.

Anheuser-Busch InBev’s top domestic priorities in 2017 are to expand its premium beer offerings while elevating consumer awareness of its core brands. The company is also looking to develop the area o...